Feb 12, 2024
Ibrahim Nana, Martin Paul Jr. Tabe-Ojong

Global Value Chains, Economic Growth, and Income Inequality: Evidence from Africa

Global value chains offer countries unique opportunities to participate in and benefit from international trade by specializing in specific production stages and tasks. We investigate the evolution of the integration of African countries into Global Value Chains (GVCs) and establish their relationsh...

Publication

Feb 12, 2024
Jann Lay, Tilman Altenburg, Melanie Müller, Tevin Tafese, Rainer Thiele, Frauke Steglich

Europäische Lieferkettenregulierung nicht aufhalten! Sie ist ein wichtiger Schritt für eine bessere Globalisierung

Im Dezember hatten sich die EU-Staaten und das Europäische Parlament auf eine Richtlinie für Lieferketten – die Corporate Sustainability Due Diligence Directive (CSDDD) – geeinigt. Die Zustimmung des Rates am 9. Februar galt als Formsache. Doch nun droht das Veto Deutschlands die Richtlinie au...


Jan 30, 2024

“Sustainable global supply chains in times of geopolitical crises” Annual Report 2023

The overarching topic of this year's report is "The Role of Geopolitics in Global Supply Chains", highlighting ways in which recent geopolitical and geo-economic developments are shaping and influencing current debates and policy processes around global supply chains (GSCs). Following...

Publication

Jan 18, 2024
Nora Aboushady, Chahir Zaki

Are Global Value Chains for Sale? On Business-State Relations in the MENA Region

We use new data on political connections from the World Bank Enterprise Surveys to examine the impact of connections on firms’ participation in global value chains (GVCs) for six MENA countries (Morocco, Tunisia, Egypt, the West Bank and Gaza, Jordan, and Lebanon). In addition to political connect...

Publication

Nov 2, 2023
Vito Amendolagine, Ulrich Elmer Hansen, Rasmus Lema, Roberta Rabellotti, Dalila Ribaudo

Taking advantage of Global Value Chains to spread green energy technologies across countries

Renewable energy technologies, such as wind turbines and solar photovoltaic (PV), are key to achieve a low-carbon transition and make our planet greener (Pegels and Altenburg, 2020). While countries in Europe have previously been the lead markets, the development and diffusion of renewable energy te...


Aug 31, 2023
Laura Mann

The evolution of the global Information Technology Enabled Services (ITES) sector and the shrinking gains of FDI for low- and middle-income economies

The information-technology-enabled services (ITES) sector, or business process outsourcing (BPO) sector, as it is sometimes known, encompasses all services that can be digitized and delivered at a distance, including call centre services, back-office processes, data management, information technolog...


Apr 28, 2023
Dalia Marin & Caroline Freund

Debate: “Will the COVID-19 pandemic reinforce preexisting trends that in turn lead to reshoring or other forms of GVC restructuring – and what does it imply for policymakers?”

Dalia Marin is Professor of International Economics at TUM School of Management, Technical University of Munich. Before joining TU Munich she was Professor of International Economics at Ludwig-Maximilians University of Munich, Associate Professor at Humboldt University Berlin, and Assistant Professo...


Apr 28, 2023
David Dollar, Arkebe Oqubay & Christopher Cramer

Debate: “Should governments push for higher domestic value added in export sectors?”

David Dollar is a senior fellow in the John L. Thornton China Center at the Brookings Institution. Before he joined Brookings, David was the U.S. Treasury’s economic and financial emissary to China. He has also worked 20 years for the World Bank, serving among others as country director for China ...


Jan 26, 2023
Aleksandra Kordalska & Magdalena Olczyk

Can Central and Eastern European countries ‘smile’ more? Trade patterns through the lens of value chain functions

A key question in the context of global value chains is: How can countries upgrade their position and focus more on high value-added activities in global value chains (GVCs)? This blog focuses on selected Central and Eastern European (CEE) countries – the Czech Republic, Estonia, Hungary, Latvia, ...


Oct 17, 2022
Antonio Andreoni and Simon Roberts

Geopolitics Of Critical Minerals In Renewable Energy Supply Chains

Addressing the climate change crisis calls for an accelerated deployment of renewableenergy technologies – solar panels and wind turbines – as well as a shift towards electric vehicles (EV) (Bainton et al., 2021). The manufacturing of these technologies, however, relies on the availability and s...

Publication

Sep 24, 2022
Jan Grumiller, Hannes Grohs, Werner Raza

How to align efficiency, resilience and sustainability in GVCs? A conceptual assessment

The COVID-19 pandemic-induced lockdowns and export restrictions highlighted the vulnerability of global trade and global value chains (GVCs). What is more, many commentators argue that the likelihood of exogenous shocks that threaten international trade and GVCs will increase in the future. This inc...


Jul 4, 2022
Stefan Pahl

Why do countries experience diverging job growth trajectories in GVCs?

Structural change, a process in which resources are shifted from less to more productive sectors, has historically been a driver of economic growth and development. Structural transformation has been particularly successful in Asia, but more recently also in sub-Saharan Africa (Kruse et al., 2021). ...


May 12, 2022
Jörg Hofstetter, Anita McGahan, Brian Silverman, Baniyelme Zoogah

A Unique Diversity: Understanding the sustainability and global integration of African businesses

Diamond rings, chocolate delights, coffee, cars and portable electronics are all integrally grounded in the African continent, however Africa’s vital contributions have not been fully integrated into scholarly understanding of supply or value chains.

Publication

May 12, 2022
Joerg S. Hofstetter, Anita M. McGahan, Brian S. Silverman, Baniyelme D. Zoogah

Sustainability and global value chains in Africa: Introduction to the Special Issue

The challenges and opportunities facing African organizations reflect a long history of tensions, tragedies, triumphs, and accomplishments in relationships across continental boundaries. For example, Africa has long been a source of critical minerals and other raw materials that are integral to a wi...

Publication

Apr 5, 2022

Sustainable Global Supply Chains Report 2022

Global supply chains affect the economy, the environment and social welfare in many ways. Worldwide, economies are experiencing global supply shortages today, affecting key industries such as automotive and consumer electronics as well as vaccine and medical supplies industries. These preoccupy poli...

Publication

Mar 25, 2022
Janina Grabs, Federico Cammelli, Sam Levy, and Rachael Garrett

How to find synergies between effectiveness and equity when designing supply chain sustainability policies

Companies with global supply chains are under growing pressure to ensure that their activities and sourcing patterns abroad do not contribute to environmental degradation and human rights abuses. In response, many businesses create supply chain sustainability policies. Such company-internal schemes,...


Mar 7, 2022
Stefano Ponte

Who Gains and who pays the costs of environmental sustainability in global value chains?

The mainstreaming of sustainability management in business is providing new avenues of value creation, capture and (re)distribution, and new opportunities to transfer the costs of environmental compliance along Global Value Chains (GVCs). Suppliers, workers, and farmers – often based in the Global...


Feb 23, 2022
Kristoffer Marslev, Cornelia Staritz, and Gale Raj-Reichert

Rethinking social upgrading in global value chains around worker power

The concept of ‘social upgrading’ has been instrumental in bringing the situation of workers in export sectors across the global South to the fore in research on global value chains (GVCs) and global production networks (GPNs). Responding to accusations of ‘labour-blindness’ (Taylor, 2007), ...


Feb 2, 2022
Kristoffer Marslev,Cornelia Staritz,and Gale Raj-Reichert

Rethinking Social Upgrading in Global Value Chains: Worker Power, State‒Labour Relations and Intersectionality

This article builds on critiques of the concept of social upgrading in global value chain (GVC) research, which problematize its coupling to lead firm strategies and economic upgrading by supplier firms, by reconceptualizing social upgrading through the lens of worker power. It argues that a better ...

Publication

Feb 1, 2022
Tilman Altenburg, Nele Wenck, Smeeta Fokeer, and Manuel Albaladejo

Green hydrogen: Opportunities for industrial development through forward linkages from renewables

Green hydrogen will be a key element in any decarbonisation strategy. All major economies are investing heavily in green hydrogen, and often also in international energy partnerships to secure long-term imports. This creates new opportunities for industrial development. Countries which are well-endo...


Jan 12, 2022
Philipp Herkenhoff, Sebastian Krautheim, Finn Ole Semrau, Frauke Steglich

Corporate Social Responsibility along the Global Value Chain

Firms are under increasing pressure to meet stakeholders’ demand for Corporate Social Responsibility (CSR) along their global value chains. We study the incentives for and investments in CSR at different stages of the production process. We analyze a model of sequential production with incomplete ...

Publication

Jan 1, 2022
Günther Maihold, Fabian Mühlhöfer

Supply Chain Instability Threatens Security of Supplies

The Covid pandemic has severely upset global supply chains. This disruption has now spread to many branches of industry, and consumers are starting to feel the impact. No short-term improvement is in sight, which has serious implications for manufac­turing processes all over the world. To begin wit...

Publication

Nov 24, 2021
Valentina De Marchi, Matthew Alford

State policies and upgrading in global value chains: A systematic literature review

This paper examines the role of state policymaking in a context of global value chains (GVCs). While the literature acknowledges that states matter in GVCs, there is little understanding of how they matter from a policy perspective. We address this tension between theory and practice by first deline...

Publication

Nov 12, 2021
Peter Kannen, Finn Ole Semrau, Frauke Steglich

Green gifts from abroad? FDI and firms’ green management

Improvements of firms' environmental performance crucially determine the speed of a country's green economic transformation. In this paper, we investigate whether firms with foreign ownership are more likely to adopt 'green' management practices, which determine the capability to...

Publication

Nov 3, 2021
Ana Margarida Fernandes, Hiau Looi Kee, and Deborah Winkler

What determines countries’ global value chain participation? Three lessons from the past that matter for the future of global value chains

Countries participate differently in global value chains In the early 1990s, Argentina tried to develop a homegrown auto industry, hiding behind an average tariff of more than 13 percent. Over the past two decades, Argentina’s auto exports have stagnated at a dismal 0.2 percent of global auto e...


Sep 21, 2021
FLORIAN BUTOLLO

No end of globalization: Digital technologies as a source of fragmentation of manufacturing

As the performance of digital devices increases by the minute and new digital base technologies like artificial intelligence (AI) or the internet of things (IoT) proliferate, economic relationships change. This not only accounts for processes within enterprises: the automation of tasks, tools for th...


Sep 16, 2021
Holger Görg, Jann Lay, Stefan Pahl, Adnan Seric, Frauke Steglich, Liubov Yaroshenko

Multilateral coordination and exchange for sustainable global value chains

While participation in global value chains (GVCs) is widely associated with benefits for countries’ development and growth, its environmental and social costs become increasingly evident. Representing core buyer and supplier countries in GVCs, the G20 is particularly suited to tackle this global c...

Publication

Sep 1, 2021
Julian Donaubauer, Peter Kannen, Frauke Steglich

Foreign Direct Investment & Petty Corruption in Sub-Saharan Africa: An Empirical Analysis at the Local Level

Inspired by a recent and ongoing debate about whether foreign direct investment (FDI) represents a blessing for or an impediment to economic, social, and political development in FDI host countries this paper addresses two issues: Does the presence of foreign investors impact the occurrence of petty...

Publication

Sep 1, 2021
Janina Grabs, Federico Cammelli, Samuel A. Levy, Rachael D. Garrett

Desgning effective and equitable zero-deforestation supply chain policies

In response to the clearing of tropical forests for agricultural expansion, agri-food companies have adopted promises to eliminate deforestation from their supply chains in the form of ‘zero-deforestation commitments’ (ZDCs). While there is growing evidence about the environmental effectiveness ...

Publication

Aug 5, 2021
Matthew Alford, Margareet Visser, Stephanie Barrientos

Southern actors and the governance of labour standards in global production networks: The case of South African fruit and wine

Recent studies highlight the emergence of standards, including multi-stakeholder initiatives developed and applied within the global South where supplier firms are usually based. This trend has created a complex ethical terrain whereby transnational standards flow through global production networks ...

Publication

Jul 16, 2021
Marion Jansen

Four Keys to Resilient Supply Chains

If you work in the field of trade policy, you have likely spent much of the last year responding to the following questions: Where are the masks? Why is there not enough personal protective equipment? Why is vaccine distribution so slow? In short, have we become too reliant on global supply chains? ...


Jul 15, 2021
Sophie Hatte, Pamina Koenig

The Geography of NGO Activism against Multinational Corporations

To what extent do Non-Governmental Organizations (NGOs) monitor global value chains? While NGOs regularly denounce the behavior of multinational corporations throughout the world, their motivations for choosing campaign targets remain largely unknown. Using a new dataset on activists’ campaigns to...

Publication

Jun 24, 2021
Giovanni Pasquali, Matthew Alford

Global value chains, private governance and multiple end-markets: insights from Kenyan leather

This article analyses how the private governance of global value chains (GVCs) varies across multiple end-markets. This is explored through a two-stage mixed-methods analysis of Kenya’s participation in leather value chains serving Europe, China, India and the COMESA region. We first draw on trans...

Publication

May 1, 2021
Andrew Bernard, Emmanuel Dhyne, Glenn Magerman, Kalina Manova, Andreas Moxnes

The Origins of Firm Heterogeneity: A Production Network Approach

This paper explores firm size heterogeneity in production networks. Using all buyer-supplier relationships in Belgium, the paper shows that firms with more customers havehigher total sales but lower sales per customer and lower market shares among thosecustomers. A decomposition of firm sales reveal...

Publication

May 1, 2021
Davin Chor, Kalina Manova, Zhihong Yu

Growing like China: Firm performance and global production line position

Global value chains have fundamentally transformed international trade and development in recent decades. We use matched firm-level customs and manufacturing survey data, together with Input-Output tables for China, to examine how Chinese firms position themselves in global production lines and how ...

Publication

Apr 22, 2021
PATRIZIA CASADEI and SIMONA IAMMARINO

The protectionist threat to global value chains: Evidence from the Brexit shock in the UK textile and apparel industry

The 2016 Brexit referendum and Donald Trump’s election are often associated with the beginning of a new era of economic nationalism and protectionism, which have given rise to the cross-country emergence of discriminatory trade measures harming foreign commercial interests (Evenett, 2019; Gereffi,...


Apr 1, 2021
LINDSAY WHITFIELD and TILMAN ALTENBURG

Automation versus relocation in clothing global value chains: Will investments shift from China to Africa at a big scale?

Since the beginning of this century, China has emerged as the workbench for the world’s clothing industry, increasing its share in global exports from 18% at the turn of the century to about 40% in 2015 (Lu 2016). This had important implications for poor countries, as participation in global cloth...


Mar 8, 2021
RASMUS LEMA, CARLO PIETROBELLI, ROBERTA RABELLOTTI and ANTONIO VEZZANI

Integration in global IT value chains does not necessarily improve innovation capacity

Global Value Chains (GVC) have characterized the evolution of the global economy during the last three decades. Integration in GVC offers remarkable potential for international tasks specialization and for accessing key knowledge and technology. Yet, it is less clear whether and under which circumst...


Feb 17, 2021
Alvaro Espitia, Aaditya Mattoo, Nadia Rocha, Michele Ruta, Deborah Winkler

Pandemic trade: COVID‐19, remote work and global value chains

This paper studies the trade effects of COVID-19 using monthly disaggregated trade data for 28 countries and multiple trading partners from the beginning of the pandemic to June 2020. Regression results based on a sector-level gravity model show that the negative trade effects induced by COVID-19 sh...

Publication

Jan 1, 2021
Emily J. Blanchard, Chad P. Bown, Robert C. Johnson

Global Value Chains and Trade Policy

How do global value chain (GVC) linkages modify countries’ incentives to imposeimport protection? Are these linkages empirically important determinants of tradepolicy in practice? To address these questions, we develop a new approach to mod-eling tariff setting with GVCs, in which opti...

Publication

Jan 1, 2021
Stefan Pahl, Clara Brandi, Jakob Schwab, Frederik Stender

Cling together, swing together: the contagious effects of COVID‐19 on developing countries through global value chains

This paper aims at estimating the economic vulnerability of developing countries to disruptions in global value chains (GVCs) due to the COVID‐19 pandemic. It uses trade in value added data for a sample of 12 developing countries in sub‐Saharan Africa, Asia and Latin America to assess their depe...

Publication

Jan 1, 2021
Marcel P. Timmer, Stefan Pahl

Structural Change in Exports: from product to functional specialization

Trade analysis on the basis of countries’ export baskets can be misleading when production is globally fragmented. The chapter argues for a switch to analysis of the type of activities that are embodied in exports. The chapter discusses two steps towards this goal. It first discusses the transit...

Publication

Jan 1, 2021
Karishma Banga, Mohamed Gharib, Maximiliano Mendez-Parra, Jamie Macleod

E-commerce in preferential trade agreements: implications for African firms and the AfCFTA

At continent level, the African Continental Free Trade Area (AfCFTA) negotiations are scheduled to include a protocol on e-commerce under Phase III, presenting a unique opportunity for African countries to collectively establish common positions on e-commerce, harmonise digital economy regulations a...

Publication

Jan 1, 2021
Laurie S.M. Reijnders, Marcel P.Timmer, Xianjia Ye

Labour demand in global value chains: Is there a bias against unskilled work?

Rodrik (2018) hypothesizes that technology used in global value chains (GVCs) is biased against the use of unskilled workers. To test this hypothesis, we introduce a GVC production function in which final output is produced by means of factor inputs from all countries that participate in the GVC. In...

Publication

Jan 1, 2021
Karishma Banga

Digital Technologies and Product Upgrading in Global Value Chains: Empirical Evidence from Indian Manufacturing Firms

This paper provides empirical evidence on the impact of digitalisation on product upgrading in Global Value Chains (GVCs). Analysis is done for a sample of Indian manufacturing GVC firms in the period 2001–2015 from the firm-level database Prowess, using the methodology of System Generalised Metho...

Publication

Jan 1, 2021
Björn Ambos, Kristin Brandl, Alessandra Perri, Vittoria G. Scalera, Ari Van Assche

The nature of innovation in global value chains

Global value chains (GVCs) have revolutionized production processes and many companies no longer produce goods and services entirely in one single country or within their own organizational boundaries. Through offshoring and outsourcing, value chains are sliced up and activities are dispersed to loc...

Publication

Jan 1, 2021
Ana Margarida Fernandes, Hiau Looi Kee, Deborah Winkler

Determinants of Global Value Chain Participation: Cross-Country Evidence

The past decades have witnessed big changes in international trade with the rise of global value chains (GVCs). Some countries, such as China, Poland, and Vietnam rode the tide, while other countries, many in the Africa region, faltered. This paper studies the determinants of countries’ GVC partic...

Publication

Jan 1, 2021
Eddy Bekkers, Robert B. Koopman, Carolina Lemos Rêgo

Structural change in the Chinese economy and changing trade relations with the world

This paper examines the impact of structural change in China, in particular a reduction in the savings rate, an increase in the share of skilled workers, and an increase in productivity in technologically advanced manufacturing sectors targeted by Made in China 2025. Baseline projections until 2040 ...

Publication

Jan 1, 2021

Searching for Trade Partners in Developing Countries

An integral part of global supply chains is the selection by international buyers of trading partners in developing countries. However, our understanding of how buyers find a suitable long term supplier is limited. I use unique buyer-seller customs data to directly observe experimentation activity i...

Publication

Jan 1, 2021
Wen Chen, Bart Los, Marcel Timmer

Factor incomes in global value chains: The role of intangibles.

Recent studies document a decline in the share of labour and a simultaneous increase in the share of residual (‘factorless’) income in national GDP. We argue the need for study of factor incomes in cross-border production to complement country studies. We define a GVC production function that tr...

Publication

Jan 1, 2021
Gideon Ndubuisi, Solomon Owusu

How important is GVC Participation to Export Upgrading

Abstract Exporting higher‐quality and complex products are deemed pathways to economic growth and development. However, producing such products are knowledge‐intensive and require quality intermediate inputs and advanced technologies. Integration into global trade networks is increasingly argue...

Publication

Jan 1, 2021
Cajal-Grossi, J, Macchiavello, R, Noguera, G.

Buyers’ Sourcing Strategies and Suppliers’ Markups in Bangladeshi Garments

Do suppliers' margins in global value chains depend on buyers' approach to sourcing? We distinguish between international buyers adopting relational versus spot sourcing strategies in the Bangladeshi garment sector. Our data allow us to match inputs used by exporters to produce specific or...

Publication

Jan 1, 2021
Anne Mette Kjær, Ole Therkildsen, Lars Buur, Michael Wendelboe Hansen

When ‘Pockets of effectiveness’ matter politically: Extractive industry regulation and taxation in Uganda and Tanzania

It is a common view that states in the developing world with substantial extractive natural resource discoveries may not have the capacity to tax and regulate multinational companies in the sector. In this article, we show that ruling elites in recently resource-rich Tanzania, and in Uganda – expe...

Publication

Jan 1, 2021
Carolin Brix‐Asala, Stefan Seuring, Philipp C. Sauer, Axel Zehendner, Lara Schilling

Resolving the base of the pyramid inclusion paradox through supplier development

Resulting from divergent business environments between actors, the integration of the base of the pyramid (BoP) into formal supply chain (SC) structures is often ham- pered by institutional voids, which can result in the emergence of paradoxical situa- tions. This paper analyzes the potential of sup...

Publication

Jan 1, 2021
Justin Barnes, Anthony Black, Lorenza Monaco

Government Policy in Multinational-Dominated Global Value Chains

Through a series of government plans, the South African automotive industry has achieved undeniable success, especially in terms of its export orientation. The industry uses efficient technologies and is integrated into global markets. However, major structural weaknesses exist. Export growth has no...

Publication

Jan 1, 2021
Mike Morris, Justin Barnes, David Kaplan

Value chains and industrial development in South Africa

This paper focuses on the dynamics of global value chains (GVC) engagement and industrial development in South Africa through two case studies - the automotive and textiles/apparel sectors. The further industrialisation and development of South Africa and of the Southern African region will depend...

Publication

Jan 1, 2021
Justin Barnes, Anthony Black, Chelsea Markowitz, Lorenza Monaco

Regional integration, regional value chains and the automotive industry in Sub-Saharan Africa

To date, regional automotive value chains have not developed to any significant extent in Africa. Growing demand for vehicles across the continent, closer economic integration and the desire on the part of some larger African countries to establish an automotive industry have improved prospects. But...

Publication

Jan 1, 2021
Antonio Andreoni, Pamela Mondliwa, Simon Roberts, and Fiona Tregenna

Structural Transformation in South Africa The Challenges of Inclusive Industrial Development in a Middle-Income Country

Taking South Africa as an important case study of the challenges of structural transformation, Structural Transformation in South Africa offers a new micro-meso level framework and evidence linking country-specific and global dynamics of change, with a focus on the current challenges and opportuniti...

Publication

Jan 1, 2020
Krishnan, A, Banga, K and Mendez-Parra, M

Disruptive technologies in agricultural value chains: Insights from East Africa

Global food demand is expected to increase by somewhere between 59% and 98% by 2050 as the world population reaches an estimated 9.7 billion. Food production is especially critical in Africa, where over 70% of the population rely on agriculture for their livelihoods. Against a backdrop of the rapid...

Publication

Jan 1, 2020
Gary Gereffi

What does the COVID-19 pandemic teach us about global value chains? The case of medical supplies

The COVID-19 pandemic has caused a dramatic shortage in the medical supplies needed to treat the virus due to a massive surge in demand as the disease circled the globe during the first half of 2020. Prior to the crisis, there was an interdependence of trade and production for medical supplies, with...

Publication

Jan 1, 2020
Jann Lay, Tevin Tafese

Promoting private investment to create jobs: A review of the evidence

The promotion of private investment, in particular in the form of Foreign Direct Investment (FDI), has been a key component of economic development strategies since the early 1990s. Recent development policy initiatives, for example the G20 Compact with Africa (CwA) but also Germany's "Mar...

Publication

Jan 1, 2020
Johan A. Oldekop, Giovanni Pasquali, Uma Kothari, Aarti Krishnan, Tom Lavers, Aminu Mamman, Diana Mitlin, Negar Monazam Tabrizi, Tanja R. Müller, Khalid Nadvi, Rose Pritchard, Nicholas Jepson, Kate Pruce, Chris Rees, Jaco Renken, Antonio Savoia, Seth Schindler, Annika Surmeier, Gindo Tampubolon, Matthew Tyce, Vidhya Unnikrishnan, Ambarish Karamchedu, Martin Hess, Rory Horner, Upasak Das, David Hulme, Roshan Adhikari, Bina Agarwal, Matthew Alford, Oliver Bakewell, Nicola Banks, Stephanie Barrientos, Tanja Bastia, Anthony J. Bebbington, Ralitza Dimova, Sam Hickey, Richard Duncombe, Charis Enns, David Fielding, Christopher Foster, Timothy Foster, Tomas Frederiksen, Ping Gao, Tom Gillespie, Richard Heeks, Yin-Fang Zhang

COVID-19 and the case for global development

COVID-19 accentuates the case for a global, rather than an international, development paradigm. The novel disease is a prime example of a development challenge for all countries, through the failure of public health as a global public good. The COVID-19 pandemic has highlighted the falsity of any as...

Publication

Jan 1, 2020
Anna Pegels, Tilman Altenburg

Latecomer development in a “greening” world: Introduction to the Special Issue

Jan 1, 2020
Philip Sauré, Philipp Herkenhoff

How Expected Inflation Distorts the Current Account and the Valuation Effect

We show that the current account balance (CA) is systematically distorted by an inflation effect, which arises because income on foreignissued debt is recorded as nominal interest in the currency of denomination. Since nominal interest includes compensations for expected inflation, increases in the ...

Publication

Jan 1, 2020
Lindsay Whitfield, Cornelia Staritz

Local supplier firms in Madagascar’s apparel export industry: Upgrading paths, transnational social relations and regional production networks

This article asks whether and how local firms in low-income countries can participate, upgrade and capture value in apparel global value chains in the context of increased entry barriers and asymmetric power relations. It focuses on Madagascar, which is the top apparel exporter in Sub-Saharan Africa...

Publication

Jan 1, 2020
Lindsay Whitfield, Cornelia Staritz, Mike Morris

Global Value Chains, Industrial Policy and Economic Upgrading in Ethiopia’s Apparel Sector

This article examines whether low‐income countries can still benefit from participating in manufacturing global value chains (GVCs) in terms of broader industrial development in a global context of greater competition and higher requirements. It contends that developing internationally competitive...

Publication

Jan 1, 2020
Heiwai Tang, Fei Wang, Zhi Wang

Domestic segment of global value chains in China under state capitalism

This paper studies the relationship between the changing domestic segment of global value chains and the return of state capitalism in China. To this end, we propose a method to estimate an extended input-output (IO) table that tracks inter-sector transactions between different types of firms in a d...

Publication

Jan 1, 2020
Xiaolan Fu

Digital Transformation of Global Value Chains and Sustainable Post-Pandemic Recovery

This perspective paper examines the impact of the COVID-19 pandemic on global production and trade from the perspective of global value chains. Particular attention is paid to the transmission mechanisms and the role of digital technology in sustainable post-pandemic economic recovery. It argues tha...

Publication

Jan 1, 2020
Erik Churchill, José-Antonio Monteiro, Victor Stolzenburg & Deborah Winkler

Women and Trade: The role of trade in promoting gender equality

In view of the complexity of the relationship between trade and gender, it is important to assess the potential impact of trade policy on both women and men and to develop appropriate policies to ensure that trade contributes to enhancing opportunities for all. Building on new analysis and data brok...

Publication

Jan 1, 2020
Christina Saulich

Accessing Global Value Chains: The Politics of Promoting Export-Driven Industrialisation and Upgrading in the Mozambican Cashew Processing Industry

This working paper focuses on the question: How does politics shape the promotion of export-driven industrialisation and firm-level upgrading in Sub-Saharan Africa? It exemplifies this question with an in-depth, qualitative study of the cashew processing industry in Mozambique in the period from...

Publication

Jan 1, 2020
Julian Glitsch, Olivier Godart, Holger Görg, Saskia Mösle, Frauke Steglich

Lagging behind? German Foreign Direct Investment in Africa

German Foreign Direct Investment (FDI) in Africa is lagging behind China, France, the Netherlands, the UK, the US, and other economies. It represented only 1 percent of the German total FDI stock abroad in 2018 and is concentrated in few African countries. Overall, around 8...

Publication

Jan 1, 2020
Aslihan Arslan, David E. Tschirley, Eva-Maria Egger

Rural Youth Welfare along the Rural-urban Gradient: An Empirical Analysis across the Developing World

We use survey data on 170,000 households from Asia, Latin America and Africa, global geo-spatial data, and an economic geography framework to highlight five findings about rural youth in developing countries. First, the youth share in population is falling rapidly, and youth numbers are stable or fa...

Publication

Jan 1, 2020
Christopher Findlay, Bernard Hoekman

Value chain approaches to reducing policy spillovers on international business

Government policy can add to the costs of doing international business. It can distort the construction of and raise the costs of operation of global value chains (GVCs), to the detriment of the participating economies. Given rising technological and market-driven headwinds confronting GVCs, countri...

Publication

Jan 1, 2020
Bernard Hoekman

Global Value Chains: Inter-Industry Linkages, Trade Costs and Policies

Jan 1, 2020
Rocco Macchiavello, Ameet Morjaria

Competition and Relational Contracts in the Rwanda Coffee Chain

How does competition affect market outcomes when formal contracts are not enforceable and parties’ resort to relational contracts? Difficulties with measuring relational contracts and dealing with the endogeneity of competition have frustrated attempts to answer this question. We make progress by ...

Publication

Jan 1, 2020
Saskia Mösle, Frauke Steglich

Policy instruments for FDI promotion in Africa

Global foreign direct investment (FDI) has increased substantially over the past decades and so has FDI in Africa. However, still only 3 percent of global FDI stocks and 1 percent of German FDI is located in Africa. There are several policy instruments that can contribute to higher investment in dev...

Publication

Jan 1, 2020
Lindsay Whitfield, Cornelia Staritz

The Learning Trap in Late Industrialisation: Local Firms and Capability Building in Ethiopia’s Apparel Export Industry

Local firms in new supplier countries face major challenges in entering manufacturing global value chains (GVCs) in the context of increased competition and requirements. To understand these challenges, we argue for the importance of looking more closely at local firm capability building, which is a...

Publication

Jan 1, 2020
Caio Torres Mazzi, Gideon Ndubuisi, and Elvis Korku Avenyo

Exporters and global value chain participation: Firm-level evidence from South Africa

Using the South African Revenue Service and National Treasury firm-level panel data for 2009-17, this paper investigates how global value chain-related trade affects the export performance of manufacturing firms in South Africa. In particular, the paper uses extant classifications of internationally...

Publication

Jan 1, 2020
Sébastien Miroudot, Håkan Nordström

Made in the World? Global Value Chains in the Midst of Rising Protectionism

In the last decade, the concept of ‘global value chain’ (GVC) has become popular to describe the way firms fragment production into different stages that are located in different economies. However, recent evidence indicates that there are lower levels of fragmentation of production. Some author...

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Jan 1, 2020
S. Chisoro-Dube, R. das Nair

Confronting entry barriers in South Africa’s grocery retail sector

Jan 1, 2020
Nicole Helmerich, Gale Raj-Reichert, Sabrina Zajak

Exercising associational and networked power through the use of digital technology by workers in global value chains

While there are heated debates about how digitalization affects production, management and consumption in the context of global value chains, less attention is paid to how workers use digital technologies to organize and formulate demands and hence exercise power. This paper explores how workers in ...

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Jan 1, 2020
Reena das Nair, Namhla Landani

The role of supermarket chains in developing food, other fast-moving consumer goods and consumer goods suppliers in regional markets.

Supermarkets are strong catalysts to stimulate the growth and development of producers and suppliers of processed food and manufactured products in Southern Africa. This paper assesses the role of supermarkets and governments in developing supplier capabilities through supplier development programme...

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Jan 1, 2020
Jedrzej George Frynas, Lars Buur

The presource curse in Africa: Economic and political effects of anticipating natural resource revenues

The notion of the ‘resource curse’ suggests that large inflows of extractive industry revenues cause many adverse macro-economic and political effects. The resource curse literature focuses on the impact of actual inflows of extractive resource revenues. However, anticipation of future resource ...

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Jan 1, 2020
Mark Alan Heuer, Usman Khalid, Stefan Seuring

Bottoms up: Delivering sustainable value in the base of the pyramid

Despite a wealth of expertise involving leading institutions over at least 15 years, a base of the pyramid (BoP) model resulting in scalability has yet to emerge. We posit that institutional gaps between BoP goals of developing human and social capital on one hand and a short-term profit focus of bu...

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Jan 1, 2020
Keun Lee, Franco Malerba, Annalisa Primi

The fourth industrial revolution, changing global value chains and industrial upgrading in emerging economies

The 4IR can open windows of opportunity for emerging economies but also raises red flags in terms of the main challenges that these changes pose to firms, industrial systems and policy approaches. Benefiting from it will not be automatic, as these economies suffer from several gaps that hamper their...

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Jan 1, 2020
Reena das Nair, Namhla Landani

New approaches to supermarket supplier development programmes in Southern Africa

Supermarkets are strong catalysts to stimulate the growth and development of suppliers of processed food and manufactured products in Southern Africa. This paper assesses the role of supermarkets and governments in developing supplier capabilities through supplier development programmes. In South Af...

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Jan 1, 2020
Robert Koopman, John Hancock, Roberta Piermartini, Eddy Bekkers

The Value of the WTO

Recent developments in global trade include actions by major global traders that lie outside the norms of behaviour of the World Trade Organization (WTO) over the last 20 years. Member frustrations with the slow pace of negotiations and concerns about strategies and behaviours of other members appro...

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Jan 1, 2020
Annalisa Primi, Manuel Toselli

A global perspective on industry 4.0 and development: new gaps or opportunities to leapfrog?

This paper contributes to the debate on digitalisation and development focusing on industrial organisation and production processes. It analyses the evolution of the global development landscape since the 1990s and provides a taxonomy of channels through which Industry 4.0 is redefining the patterns...

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Jan 1, 2020
Fabio Landini, Rasmus Lema, Franco Malerba

Demand-led catch-up: a history-friendly model of latecomer development in the global green economy

This article examines the role played by demand in catching up and in leadership changes in green industries, motivated by the belief that demand-led catch-up is a prevalent pathway in such industries. The article first examines stylized cases of sectoral green catch-up by China in which the local m...

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Jan 1, 2020
Wei Tian, Miaojie Yu

Distribution, outward FDI, and productivity heterogeneity: China and cross-countries’ evidence

This paper examines distribution-oriented outward FDI using Chinese multinational firm–level data. Distribution outward FDI refers to Chinese parent firms in manufacturing that penetrate foreign markets through wholesale trade affiliates that resell exportable goods. Our estimations correct for ra...

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Jan 1, 2020
Sébastien Miroudot

Reshaping the policy debate on the implications of COVID-19 for global supply chains

Disruptions in global supply chains in the context of the COVID-19 pandemic have re-opened the debate on the vulnerabilities associated with production in complex international production networks. To build resilience in supply chains, several authors suggest making them shorter, more domestic, and ...

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Jan 1, 2020
Bart Los, Marcel Timmer

Measuring bilateral exports of value added: a unified framework.

We provide a unified framework for measuring bilateral exports of value added. We outline a general methodology that encompasses the measures introduced by Johnson and Noguera (2012) (value added consumed abroad) and Los et al. (2016) (value added in exports), to which we refer as VAX-C and VAX-D, ...

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Jan 1, 2020
Gideon Ndubuisi, Emmanuel Mensah and Solomon Owusu

Export Variety and Imported Intermediate Inputs: Industry-Level Evidence from Africa

Imported intermediate inputs offer access to lower-priced, higher quality, and a wider variety of inputs that can increase the possibility of producing and selling more diversified products in foreign markets. In this paper, we examine this relationship using a novel manufacturing industry-level dat...

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Jan 1, 2020
Reena das Nair, Namhla Landani

Making agricultural value chains more inclusive through technology and innovation

Some entry barriers in agricultural and agro-processing value chains, particularly for smallholder farmers and small/medium-sized processors, can be overcome with innovation and technology adoption. Technologies and innovation in these sectors have been both radical and incremental, ranging widely t...

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Jan 1, 2020
Neil M. Coe

Logistical geographies

Although logistics are fundamentally geographical and of critical importance to contemporary society, it is only relatively recently that human geographers and cognate social scientists have started to meaningfully engage with the topic. This paper explores this recent growth of interest, which enco...

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Jan 1, 2020
Jo van Biesebroeck, Alexander Schmitt

Testing Predictions on Supplier Governance from the Global Value Chains Literature

A vast empirical literature analyzes the determinants of the make-or-buy decision, but firms also need to decide how to organize their supplier relationships when they choose to buy. The global value chains framework provides predictions on the nature of buyer-supplier collaboration. We use a unique...

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Jan 1, 2020
Adnan Seric, Holger Görg, Wan-Hsin Liu and Michael Windisch

Risk, resilience and recalibration in global value chains

Current global value chains are highly efficient, specialized and interconnected, but also highly vulnerable to global risks. The COVID-19 pandemic has been a stark demonstration of this point, causing supply-side disruptions in the first quarter of 2020, as China and other Asian economies were hit ...

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Jan 1, 2020
Bethelhem Legesse Debela, Esther Gehrke, Matin Qaim

Links between Maternal Employment and Child Nutrition in Rural Tanzania

Improving child nutrition and empowering women are two important and closely connected development goals. Fostering female employment is often seen as an avenue to serve both these goals, especially if it helps to empower the mothers of undernourished children. However, maternal employment can influ...

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Jan 1, 2020
Lindsay Whitfield, Cornelia Staritz, Ayelech T. Melese, Sameer Azizi

Technological Capabilities, Upgrading, and Value Capture in Global Value Chains: Local Apparel and Floriculture Firms in Sub-Saharan Africa

Many local firms in sub-Saharan African countries are failing to enter and upgrade in new manufacturing and agribusiness export sectors. This article argues that we need to look more closely at the costly, risky, and uncertain firm-level processes of building capabilities in order to understand this...

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Jan 1, 2020
Anthony Goerzen, Simon Peter Iskander, Joerg Hofstetter

The effect of institutional pressures on business-led interventions to improve social compliance among emerging market suppliers in global value chains

Emerging market governments are incented to attract global value chain (GVC) activities to fuel economic growth. At the same time, in light of real and perceived workplace-related injustices within emerging markets, GVC lead firms are under pressure to improve social standard compliance within their...

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Jan 1, 2020
Justine Falciola, Marion Jansen, Valentina Rollo

Defining firm competitiveness: A multidimensional framework

Defining and measuring competitiveness remains a subject of interest as well as debate: policy makers need to understand how competitive their country is relative to others, and how their competitive position evolves overtime (Fagerberg & Srholec, 2017). As such, well-known indicators of country...

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Jan 1, 2020
Yuan Zi

Trade costs, global value chains and economic development

This paper develops a model to study the impact of trade costs on developing countries’ industrialization when sequential production is networked in global value chains (GVCs). In a two-country setting, a decrease in trade costs of intermediates is associated with South joining and moving up the v...

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Jan 1, 2020
Lars Buur, Rasmus H. Pedersen, Malin J. Nystrand, José J. Macuane, Thabit Jacob

The politics of natural resource investments and rights in Africa: A theoretical approach

Over the past decade and a half, large-scale investments in natural resources in African countries have increased dramatically. While investments in natural resources and agriculture have become more important for African economies, since they have stimulated economic growth and made regimes depende...

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Jan 1, 2020
Reena das Nair

The “supermarket revolution” in the South

This chapter evaluates the extent of 'supermarketisation' and internationalisation of supermarket chains and the implications on consumers, suppliers and the competitive landscape. While the degree of both supermarketisation and internationalisation has not been to the extent that was pred...

Publication

Jan 1, 2020
Ha‐Joon Chang, Antonio Andreoni

Industrial Policy in the 21st Century

Industrial policy is back at the centre stage of policy debate, while the world is undergoing dramatic transformations. This article contributes to the debate by developing a new theory of industrial policy, incorporating some issues that have been neglected so far and taking into account the recent...

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Jan 1, 2020
Rocco Macchiavello and Ameet Morjaria

Competition and Relational Contracts in the Rwanda Coffee Chain

How does competition affect market outcomes when formal contracts are not enforceable and parties resort to relational contracts? Difficulties with measuring relational contracts and dealing with the endogeneity of competition have frustrated attempts to answer this question. We make progress by stu...

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Jan 1, 2020
Stamm, Andreas, Luise Dietrich, Heike Harling, Laura Häußler, Florian Münch, Jana Preiß, Jan Siebert

Sustainable public procurement as a tool to foster sustainable development in Costa Rica: challenges and recommendations for policy implementation

In 2015, Costa Rica was the first country in Latin America to approve a National Policy for Sustainable Public Procurement (SPP). In 2018, a research team from DIE studied the efforts to make SPP a reality in Costa Rica and developed policy conclusions, partly drawing on international experience. ...

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Jan 1, 2019
Stefano Ponte, Gary Gereffi, Gale Raj-Reichert

Handbook on Global Value Chains

Global value chains (GVCs) are a key feature of the global economy in the 21st century. They show how international investment and trade create cross-border production networks that link countries, firms and workers around the globe. This Handbook describes how GVCs arise and vary across industries ...

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Jan 1, 2019
Raphael Kaplinsky, Mike Morris

Trade and Industrialisation in Africa: SMEs, Manufacturing and Cluster Dynamics

Trade in manufacturing through global and regional value chains has played an especially prominent role in global economic growth in recent decades. However, Africa faces severe challenges in growing manufacturing activities in the face of China and Southeast Asia’s competitive dominance of global...

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Jan 1, 2019
Cosimo Beverelli, Victor Stolzenburg, Robert B. Koopman, Simon Neumueller

Domestic value chains as stepping stones to global value chain integration

Jan 1, 2019
Miaojie Yu

China’s manufacturing value chain ascent to date

This chapter utilizes total factor productivity (TFP) to measure the performance of large Chinese firms in 2001–2008. The upgrading of China’s manufacturing value chain that has resulted from integration with world markets has rich policy implications. The chapter describes the performance of th...

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Jan 1, 2019
Stefan Pahl, Marcel P. Timmer

Do Global Value Chains Enhance Economic Upgrading? A Long View

Exporting through global value chains (GVCs) has recently been highlighted as a panacea for weak industrialisation trends in the South. We study the long-run effects of GVC participation for a large set of countries between 1970 and 2008. We find strong evidence for the positive effects on productiv...

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Jan 1, 2019
Mauro Boffa, Marion Jansen, Olga Solleder

Do we need deeper trade agreements for GVCs or just a BIT?

The paper investigates two policies geared towards stimulating and shaping global value chains (GVCs), namely deep regional trade agreements (DRTAs) and bilateral investment treaties (BITs). In an augmented gravity model, we test the impact of both policies on a variety of trade in value added indic...

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Jan 1, 2019
Laura Alfaro, Pol Antràs, Davin Chor, Paola Conconi

Internalizing Global Value Chains: A Firm-Level Analysis

A key decision facing firms is the extent of control to exert over the different stages in their production processes. We develop and test a property rights model of firm boundary choices along the value chain. We construct firm-level measures of the upstreamness of integrated and nonintegrated inpu...

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Jan 1, 2019
Morris, M. and C. Staritz

Industrialization paths and industrial policy for developing countries in global value chains

Structural transformation to higher productivity and value-added activities remains a key objective for developing countries. Industrial policy has historically had an important role in supporting such transformation processes. Today, the external context is fundamentally different with the rise of ...

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Jan 1, 2019
Sourafel Girma, Holger Görg, Erasmus Kersting

Which boats are lifted by a foreign tide? Direct and indirect wage effects of foreign ownership

The attraction of foreign direct investment (FDI) is considered to be of particular importance for emerging economies because it represents a channel through which international convergence in standards of living may be achieved. One important effect of FDI is its impact on wages, both within the ta...

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Jan 1, 2019
Vito Amendolagine, Andrea F. Presbitero, Roberta Rabellotti, Marco Sanfilippo

Local sourcing in developing countries: The role of foreign direct investments and global value chains

The local sourcing of intermediate products is one the main channels for foreign direct investment (FDI) spillovers. This paper investigates whether and how participation and positioning in the global value chains (GVCs) of host countries is associated to local sourcing by foreign investors. Matchin...

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Jan 1, 2019
Karishma Banga, Neil Balchin

Linking Southern Africa into South Africa’s global value chains

This study explores the potential for South Africa to become an engine for intra- regional trade and industrial development by linking other Southern African countries to its global value chains and, in the process, improving its global trade competitiveness. The study identifies ‘lead products’...

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Jan 1, 2019
Rasmus Lema, Carlo Pietrobelli, Roberta Rabellotti

Innovation in global value chains

In this chapter, the authors focus on innovation in global value chains and on the role that such chains play in building and deepening capability. They also focus on the trajectories along which firms, located in developing countries, once inserted into global value chains acquire or lose innovatio...

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Jan 1, 2019
Chiara Franco, Marco Sanfilippo, Adnan Seric

Investors’ characteristics and the business climate as drivers of backward linkages in Vietnam

This paper analyses the factors determining the establishment of backward linkages and their key features once established. To carry out our analysis, we exploit an original survey conducted in 2011 on roughly 1500 investors based in Vietnam. We show that some characteristics of the investor firm, i...

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Jan 1, 2019
Nikhil Patel, Zhi Wang, Shang‐Jin Wei

Global Value Chains and Effective Exchange Rates at the Country‐Sector Level

The real effective exchange rate (REER) is one of the most cited statistics in open‐economy macroeconomics. We show that the models used to compute these numbers are not rich enough to allow for the rising importance of global value chains. Moreover, because different sectors within a country part...

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Jan 1, 2019
Gale Raj-Reichert

Global Value Chains, Contract Manufacturers, and the Middle-Income Trap: The Electronics Industry in Malaysia

The electronics industry has been a cornerstone to the successful industrialisation process in Malaysia since the 1970s. However, since the 2000s the industry, which is deeply integrated in global value chains, has failed to upgrade. Its stagnation is indicative of the general economic situation in ...

Publication

Jan 1, 2019
Victor Stolzenburg, Daria Taglioni, Deborah Winkler

Economic upgrading through global value chain participation: which policies increase the value-added gains?

The emergence of global value chains has opened up new ways to achieve development and industrialization. However, new evidence shows that not all countries have gained from participating in global value chains, and that country-specific characteristics matter for economic upgrading in global value ...

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Jan 1, 2019
Michael Brüntrup

Agricultural growth corridors in sub-Saharan Africa – new hope for agricultural transformation and rural development?

Agricultural growth corridors – areas along a central transport line that receive intensive agricultural investments – are a recent approach to economic development in sub-Saharan Africa. Since they are usually planned and managed as strategic private-public partnerships, they promise to bring t...

Publication

Jan 1, 2019
World Bank

World Development Report 2020: Trading for Development in the Age of Global Value Chains

Jan 1, 2019
Ismail Doga Karatepe, Christoph Scherrer

Collective Action as a Prerequisite for Economic and Social Upgrading in Agricultural Production Networks

This article highlights the importance of collective action and the role of the state in upgrading the social and economic conditions of farmworkers and smallholders. It is argued that economic upgrading does not automatically translate into social upgrading for workers and small producers and explo...

Publication

Jan 1, 2019
Davin Chor

Modeling global value chains: approaches and insights from economics

In recent years, the emergence of global value chains in how firms organize their production strategies has drawn the attention of economists, particularly those in the field of international trade. This has spawned a growing body of applied theoretical work to capture the fragmentation of productio...

Publication

Jan 1, 2019
Pamina Koenig, Sandra Poncet

Social responsibility scandals and trade

This paper studies the effect of social responsibility scandals on the imports of consumer products, by focusing on an event which generated massive consumer mobilization against neglecting firms, namely the collapse of the Rana Plaza building affecting the textile industry in Bangladesh. We investi...

Publication

Jan 1, 2019
Keppner, Benno, Daniel Weiß, Pietro Bertazzi, Bibiana García

Beyond Rhetoric: Why Foreign Policy Needs to Foster Private Sector SDG Implementation.

From conflict prevention to human rights protection – companies are vital for the success of the 2030 Agenda and foreign policy alike. But progress on SDG implementation in the business world is at a turning point. Foreign policy can and must play a decisive role by building a robust knowledge bas...

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Jan 1, 2019
Pamina Koenig and Sandra Poncet

Reputation and (un)fair trade: Effects on French importers from the Rana Plaza collapse

This paper analyzes the effects of a major reputational shock affecting textile importers fromBangladesh. The collapse of the Rana Plaza building in April 2013 generated a surge of activismand media coverage specifically targeting the firms that sourced from the factories affected bythe disaster. Us...

Publication

Jan 1, 2019
Neil M Coe, Henry Wai-chung Yeung

Global production networks: mapping recent conceptual developments

In this framing paper for the special issue, we map significant research on global production networks during the past decade in economic geography and adjacent fields. In line with the core aim of the special issue to push for new conceptual advances, the paper focuses on the central elements of GP...

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Jan 1, 2019
Arthur Blouin, Rocco Macchiavello

Strategic Default in the International Coffee Market

This article studies strategic default on forward sale contracts in the international coffee market. To test for strategic default, we construct contract-specific measures of unanticipated changes in market conditions by comparing spot prices at maturity with the relevant futures prices at the contr...

Publication

Jan 1, 2019
Gale Raj-Reichert

The powers of a social auditor in a global production network: the case of Verité and the exposure of forced labour in the electronics industry

Research on labour governance actors in global production networks (GPNs) has been limited to civil society organisations, firms and governments. Understanding the influence of actors in GPNs has been dealt with singular and overt modes of relational power. This paper contributes to both debates by ...

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Jan 1, 2019
Inga Heiland, Andreas Moxnes, Karen-Helene Ulltveit-Moe, Yuan Zi

Trade From Space: Shipping Networks and The Global Implications of Local Shocks

This paper examines the structure of the shipping network and its implications on global trade and welfare. Using novel data on the movements of container ships, we calculate optimal travel routes. We then estimate the impact of a shock to the network on global trade by means of a natural experiment...

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Jan 1, 2019
Asmita Parshotam, Javier Revilla Diez

Economic Growth Corridors Through a Value-Chain Lens: The Case of the Southern Agricultural Growth Corridor in Tanzania

Tanzania’s Southern Agricultural Growth Corridor (SAGCOT) is a role-model economic growth corridor (EGC). It aims at easing the incorporation of smallholder farmers into global and regional value chains through partnerships with larger agricultural companies. EGCs in general and SAGCOT in particul...

Publication

Jan 1, 2019
Stefan Pahl, Marcel P. Timmer

Patterns of vertical specialisation in trade: long-run evidence for 91 countries

The authors estimate the domestic value-added content in exports of manufacturing goods (VAX-D ratio) for 91 countries over the period from 1970 to 2013. They find a strong decline in the world VAX-D ratio since the mid-1980s mostly accounted for by the substitution of foreign for domestic intermedi...

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Jan 1, 2019
Stefan Pahl, Marcel P. Timmer, Reitze Gouma, Pieter J. Woltjer

Jobs in Global Value Chains: New Evidence for Four African Countries in International Perspective

What is the potential for job growth in Africa under participation in global value chains (GVCs)? In this study the concept of GVC jobs is introduced which tracks the number of jobs associated with GVC production of goods. A novel decomposition approach is used to account for GVC jobs by three proxi...

Publication

Jan 1, 2019
Matteo Fiorini, Bernard Hoekman, Marion Jansen, Philip Schleifer, Olga Solleder, Regina Taimasova, Joseph Wozniak

Institutional design of voluntary sustainability standards systems: Evidence from a new database

Voluntary sustainability standards (VSS) have become a significant element of the governance of international trade and production. Even though VSS are not mandatory (required by law), in practice they are often necessary for producers to participate in global value chains. Finally, VSS are often co...

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Jan 1, 2019
Amendolagine, V., Chaminade, C., Guimón, J., & Rabellotti, R.

Cross-border Knowledge Flows Through R&D FDI: Implications for Low-and Middle-income Countries.

R&D related foreign direct investments represent a powerful mechanism for cross-border knowledge sharing that can stimulate the process of technological catch-up. However, low-income countries and smaller middle-income countries remain largely excluded from this kind of global flows of knowledge...

Publication

Jan 1, 2019
M. Kaplan, K. Vorwerk, S. Leiderer

From the Paris Declaration to the 2030 Agenda: Is the global sustainability agenda overburdening development cooperation?

Jan 1, 2019
Emily Blanchard

Trade wars in the global value chain era

The nature of global commerce has changed dramatically over the past 40 years, with the meteoric rise of global value chain trade. This column, taken from a recent Vox eBook, builds on insights from recent research to identify three critical dimensions of global value chain trade that promise to mak...

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Jan 1, 2019
Antonio Andreoni, Ha-Joon Chang

The political economy of industrial policy: Structural interdependencies, policy alignment and conflict management

Industrial policy is back in the mainstream debates. The paper provides a long-term analytical perspective of the industrial policy debate, and it critically assesses the current mainstream phase of the debate in light of three fundamental theoretical insights that developed along several decades of...

Publication

Jan 1, 2018
Xiaolan Fu, Jun Hou, Xiaohui Liu

Unpacking the Relationship between Outward Direct Investment and Innovation Performance: Evidence from Chinese firms

This study investigates the impact of outward direct investment (ODI) by Chinese MNEs on innovation performance and the conditions under which such an impact is moderated, based on a sample of Chinese firms. The empirical evidence suggests that undertaking ODI leads to an increase in the innovation ...

Publication

Jan 1, 2018
Dennis Davis, Raphael Kaplinsky, Mike Morris

Rents, Power and Governance in Global Value Chains

This paper addresses the  generation  of  rents  and  the  distribution  of  gains  in  the  global  operations  of  governed Global  Value  Chains  (GVCs)  and  seeks  to  provide  an  architecture  for  analyzing  the  governance  of  GVCs.  It distinguishes between f...

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Jan 1, 2018
Andrea Andrenelli, Charles Cadestin, Koen De Backer, Sébastien Miroudot, Davide Rigoi, Ming Ye

Multinational production and trade in services

Using the OECD analytical AMNE database, this paper provides new evidence on the services activities of multinational enterprises (MNEs) and discusses the relationship between cross-border trade in services and the production of services through foreign affiliates (“mode 3” trade in services in ...

Publication

Jan 1, 2018
Farole, T.; Hollweg, C.; Winkler, D.

Trade in Global Value Chains : An Assessment of Labor Market Implications

The paper is structured in six further sections following this introduction. Section two develops a conceptual framework, and reviews the literature on the relationship between trade integration and labor market outcomes. Section three outlines the empirical framework and data used in the analysis. ...

Publication

Jan 1, 2018
Marcel P Timmer, Sébastien Miroudot, Gaaitzen J de Vries

Functional specialisation in trade

Production processes are fragmenting across borders with countries trading tasks rather than products. Export statistics based on value added reveal a process of vertical specialisation. Yet, what do countries do when exporting? In this article, we provide novel evidence on functional specialisation...

Publication

Jan 1, 2018
Quanrun Chen, Kunfu Zhu, Peng Liu, Xiangyin Chen, Kailan Tian, Lianling Yang, Cuihong Yang

Distinguishing China’s processing trade in the world input-output table and quantifying its effects

Distinguishing processing trade is crucial to national input-output table-based research on China's international trade. This paper further investigates the importance of distinguishing China's processing trade in multicountry input-output table-based studies. We focus on the bias in China...

Publication

Jan 1, 2018
Carlo Pietrobelli, Anabel Marin, Jocelyn Olivari

Innovation in mining value chains: New evidence from Latin America

The paper investigates new opportunities for innovation and linkages associated to mining activities in Brazil, Chile and Peru. Three types of opportunities were researched: demand side, supply side and local specificities. The last source of opportunities is key for natural resource related activit...

Publication

Jan 1, 2018
Ari Van Assche, Johannes Van Biesebroeck

Functional upgrading in China’s export processing sector

Functional upgrading occurs when a firm acquires more sophisticated functions within an existing value chain. In this paper, we analyze if there is evidence of this type of upgrading in China's export processing regime by investigating dynamics in the relative prevalence of Import & Assembl...

Publication

Jan 1, 2018
Laurie S.M. Reijnders, Gaaitzen J. de Vries

Technology, offshoring and the rise of non-routine jobs

This paper documents the growing share of non-routine jobs in the labor force of thirty-seven advanced and emerging countries over the period 1999–2007. To examine the role of offshoring and technological change in driving this labor market development, we develop a task-based model of production ...

Publication

Jan 1, 2018
Davin Chor, Pol Antràs

On the measurement of upstreamness and downstreamness in global value chains

This paper offers four contributions to the empirical literature on global value chains (GVCs). First, we provide a succinct overview of several measures developed to capture the upstreamness or downstreamness of industries and countries in GVCs. Second, we employ data from the World Input-Output Da...

Publication

Jan 1, 2018
Philipp Harms, Jakob Schwab

Like it or not? How the economic and institutional environment shapes individual attitudes towards multinational enterprises

This paper analyses the determinants of people's attitudes towards foreign direct investment (FDI) using a survey‐based data set that covers a wide range of rich and poor countries. We find that both individual socioeconomic characteristics and macroeconomic and institutional factors shape ag...

Publication

Feb 1, 2017
Jennifer Bair

Contextualising compliance: hybrid governance in global value chains

Widespread disappointment with compliance auditing in supply chains has led to a search for new governance solutions in global industries. Recent scholarship on labour standards in supply chains emphasises the need for complementarity between public and private forms of governance, and the importanc...

Publication

Jan 1, 2017
Holger Görg, Erasmus Kersting

Vertical integration and supplier finance

This paper studies access to finance by suppliers that are linked to a multinational enterprise. The theoretical framework consists of a property rights model featuring suppliers that are either vertically integrated or sell to the multinational at arm's length, which in turn affects the availa...

Publication

Jan 1, 2017
Axel Berger, Dominique Bruhn

Vietnam at a crossroads: engaging in the next generation of global value chains

Vietnam is a lower-middle–income country and, like many of its peers, faces the challenge of upgrading to higher value-added tasks in global value chains (GVCs). Participation and upgrading are not an arbitrary policy objective: both may be of decisive importance for Vietnam’s future economic de...

Publication

Jan 1, 2017
Antràs, Pol, Teresa C. Fort, Felix Tintelnot

The Margins of Global Sourcing: Theory and Evidence from U.S. Firms

We develop a quantifiable multi-country sourcing model in which firms self-select into importing based on their productivity and country-specific variables. In contrast to canonical export models where firm profits are additively separable across destination markets, global sourcing decisions natur...

Publication

Jan 1, 2017
Philipp Harms, Pierre-Guillaume Méon

Good and useless FDI: The growth effects of greenfield investment and mergers and acquisitions

We explore the effect of foreign direct investment (FDI) on economic growth, distinguishing between mergers and acquisitions (M&As) and “greenfield” investment. A simple model underlines that, unlike greenfield investment, M&As partly represent a rent accruing to previous owners, and do ...

Publication

Jan 1, 2017
Altenburg Tilman, Dani Rodrik

Green industrial policy: Accelerating structural change towards wealthy green economies

The Chapter discusses the conceptual foundations of green industrial policy. Altenburg and Rodrik explain why looking through the lens of industrial policy provides important insights for a green transformation. They summarize lessons learned from decades of experimentation with, and research on, in...

Publication

Jan 1, 2017
Wen Chen, Bart Los, Philip McCann, Raquel Ortega-Argilés, Mark Thissen, Frank van Oort

The continental divide? Economic exposure to Brexit in regions and countries on both sides of The Channel

In this paper we employ an extension of the World Input‐Output Database (WIOD) with regional detail for EU countries to study the degree to which EU regions and countries are exposed to negative trade‐related consequences of Brexit. We develop an index of this exposure, which incorporates all ef...

Publication

Jan 1, 2017
Angie N Tran, Jennifer Bair, Marion Werner

Forcing change from the outside? The role of trade-labour linkages in transforming Vietnam’s labour regime

Do trade-labour linkages improve the conditions and rights of workers in low-wage countries? We consider this question in Vietnam, a market economy with socialist orientation that has seen rapid growth in export manufacturing and foreign direct investment, while signing regional trade agreements, wh...

Publication

Jan 1, 2017
Loren Brandt, Johannes Van Biesebroeck, Luhang Wang, Yifan Zhang

WTO Accession and Performance of Chinese Manufacturing Firms

We examine the effects of trade liberalization in China on the evolution of markups and productivity of manufacturing firms. Although these dimensions of performance cannot be separately identified when firm output is measured by revenue, detailed price deflators make it possible to estimate the ave...

Publication

Jan 1, 2017
Aksel Erbahar, Yuan Zi

Cascading trade protection: Evidence from the US

In a world with increasingly integrated global supply chains, trade policy targeting upstream products has unintended consequences on their downstream industries. In this paper, we examine whether protection granted to intermediate manufacturers leads to petition for protection by their downstream u...

Publication

Jan 1, 2017
Ahmad, N, Primi A.

From domestic to regional to global: Factory Africa and factory Latin America?

This chapter provides a brief overview of upgrading and GVC terminologies, providing insights on interpretability pitfalls. It offers evidence of the complementarities between strong domestic supply chains and imports and then demonstrates the importance of strong regional value chains for integrati...

Publication

Jan 1, 2017
Emily Blanchard

Renegotiating NAFTA: The role of global supply chains

The Trump administration has been outspoken in its criticism of NAFTA, which the president has called “the worst deal ever made”. This column, taken from a recent Vox eBook, argues that reversing the current NAFTA policy environment would not simply wind back the clock to the pre-agreement econo...

Publication

Jan 1, 2017
Carlo Pietrobelli, Cornelia Staritz

Upgrading, Interactive Learning, and Innovation Systems in Value Chain Interventions

Value chain interventions are increasingly used by donors in the context of private sector development. The paper develops a typology of such interventions, and presents the case of one multilateral lending institution – the Inter-American Development Bank. It argues that interventions risk transf...

Publication

Jan 1, 2017
Ximena Rueda, Rachael D. Garrett, Eric F. Lambin

Corporate investments in supply chain sustainability: Selecting instruments in the agri-food industry

Private investments to address environmental issues are perceived as a powerful engine of sustainability. For the agri-food sector, multiple instruments have been developed to green supply chains. Yet little is known about the underlying process and conditions under which green sourcing concerns lea...

Publication

Jan 1, 2016
Thomas Farole

Do global value chains create jobs?

Global value chains (GVCs) describe the cross-national activities and inputs required to bring a product or service to the market. While they can boost exports and productivity, the resulting labor market impacts vary significantly across developing countries. Some experience large-scale manufacturi...

Publication

Jan 1, 2016
Rajesh SN Raj, Kunal Sen

Moving out of the bottom of the economy? Constraints to firm transition in the Indian informal manufacturing sector

The predominant type of firms in developing countries is small family firms and the self-employed in the informal sector. Very few family firms make the transition to larger firms employing non-family labour. In this paper, we examine the reasons for the low presence of firms employing non-family la...

Publication

Jan 1, 2016
Kalina Manova, Zhihong Yu

How firms export: Processing vs. ordinary trade with financial frictions

The fragmentation of production across borders allowsfirms to make and exportfinal goods, or to perform only in-termediate stages of production by processing imported inputs for re-exporting. We examine howfinancial frictionsaffect companies' choice between processing and ordinary trade–impli...

Publication

Jan 1, 2016
Mi Dai, Madhura Maitra, Miaojie Yu

Unexceptional exporter performance in China? The role of processing trade

The firm level trade literature finds that exporters are exceptional performers for a wide range of countries and measures. Paradoxically, the one documented exception is the world's largest exporter, China. We show that this puzzling finding is entirely driven by firms that engage only in expo...

Publication

Jan 1, 2016
Sebastian Krautheim, Tim Schmidt-Eisenlohr

Wages and International Tax Competition

We introduce wage bargaining and private information into a model of profit shifting and tax competition between a large and a small country. Shifting profits to the small country not only reduces a firm's tax bill but also creates private information on profitability, altering the wage bargain...

Publication

Jan 1, 2016
Taglioni, D.; Winkler, D.

Making Global Value Chains Work for Development

Economic, technological, and political shifts as well as changing business strategies have driven firms to unbundle production processes and disperse them across countries. Thanks to these changes, developing countries can now increase their participation in global value chains (GVCs) and thus beco...

Publication

Jan 1, 2016
KUNAL SEN, CHAITALI SINHA

The location choice of US foreign direct investment: how do institutions matter?

We look at the institutional determinants of both within- and across-country variations in US foreign direct investment (FDI) flows over time. The strength of our approach is that in contrast to the previous work that has focused on average FDI flows across countries, we are able to explain both the...

Publication

Jun 3, 2015
Rocco Macchiavello and Ameet Morjaria

The Value of Relationships: Evidence from a Supply Shock to Kenyan Rose Exports

This paper provides evidence on the importance of reputation in the context of the Kenyan rose export sector. A model of reputation and relational contracting is developed and tested. A seller’s reputation is defined by buyer’s beliefs about seller’s reliability. We show that (i) due to lack o...

Publication

Jan 1, 2015
Rocco Macchiavello, Ameet Morjaria

The Value of Relationships: Evidence from a Supply Shock to Kenyan Rose Exports

This paper provides evidence on the importance of reputation in the context of the Kenyan rose export sector. A model of reputation and relational contracting is developed and tested. A seller's reputation is defined by buyer's beliefs about seller's reliability. We show that (i) due ...

Publication

Jan 1, 2014
Marion Werner, Jennifer Bair, Victor Ramiro Fernández

Linking Up to Development? Global Value Chains and the Making of a Post-Washington Consensus

Over the last decade, the global value chain (GVC) approach, with its associated notions of chain governance and firm upgrading, has proliferated as a mode of analysis and of intervention amongst development institutions. This article examines the adoption and adaptation of GVCs at four multilateral...

Publication

Jan 1, 2014
Kishore Gawande, Bernard Hoekman, Yue Cui

Global Supply Chains and Trade Policy Responses to the 2008 Crisis

The collapse in trade and the contraction of output that occurred during 2008–9 was comparable to, and in many countries more severe than, the Great Depression of the 1930s. However, it did not give rise to the rampant protectionism that followed the Great Crash. The idea that the rise in the frag...

Publication

Jan 1, 2014
Bernard Hoekman

Supply Chains, Mega-Regionals and Multilateralism: A Road Map for the WTO

At the 9th Ministerial Conference of the WTO in Bali it was agreed to develop a work program to conclude the long-running Doha round. This report argues that any work program should recognize that goods and services are increasingly produced in international supply chains. Many of the policies impac...

Publication

Jan 1, 2014
Farole, T.; Winkler, D.

Making Foreign Direct Investment Work for Sub-Saharan Africa : Local Spillovers and Competitiveness in Global Value Chains

Economic, technological, and political shifts as well as changing business strategies have driven firms to unbundle production processes and disperse them across countries. Thanks to these changes, developing countries can now increase their participation in global value chains (GVCs) and thus becom...

Publication

Jan 1, 2014
Cuihong Yang, Erik Dietzenbacher, Jiansuo Pei, Xikang Chen, Kunfu Zhu, Zhipeng Tang

Processing Trade Biases the Measurement of Vertical Specialisation in China

Vertical specialization (VS) is often measured by the import contents of the exports, using an input–output (I–O) framework. Half of China’s exports are processing exports, which largely depend on imported intermediate inputs and tie up upstream as well as downstream trade partners. Thus, one ...

Publication

Jan 1, 2013
Shujin Zhu, Xiaolan Fu

Drivers of Export Upgrading

This paper analyses the determinants of export upgrading using a cross-country panel dataset over the 1992–2006 period. The results suggest that the export sophistication of countries is enhanced by capital deepening, engagement in knowledge creation, transfers via investment in education and R&am...

Publication

Jan 1, 2013
William Milberg, Deborah Winkler

Outsourcing Economics: Global Value Chains in Capitalist Development

Jan 1, 2012
David Kaplan

South African mining equipment and specialist services: Technological capacity, export performance and policy

South Africa has developed a technologically sophisticated and globally competitive mining equipment and specialist services sector. The paper provides evidence for and measurement of technological competency and global competitiveness and a brief outline of why South Africa was successful in this r...

Publication

Jan 1, 2012
Philipp Harms, Oliver Lorz, Dieter Urban

Offshoring along the production chain

In this paper, we analyze the offshoring decision of firms whose production process is characterized by a particular sequence of steps. International cost differences vary non‐monotonically along the production chain, and moving unfinished goods across borders incurs transport costs. We show that,...

Publication

Jan 1, 2012
Mike Morris, Raphael Kaplinsky, David Kaplan

“One thing leads to another”—Commodities, linkages and industrial development

With a particular focus on low income economies in SSA, this paper addresses the nature and determinants of linkages from the commodities sectors and challenges the received view that enclave development is an inherent characteristic of resource extraction, particularly in the hard and energy commod...

Publication

Jan 1, 2011
Xiaolan Fu

Processing Trade, FDI and the Exports of Indigenous Firms: Firm-Level Evidence from Technology-Intensive Industries in China

This study examines the impact of processing trade‐foreign direct investment (FDI) on the export competitiveness of indigenous firms using disaggregated firm‐level production data and product‐level trade data from China covering the 2000–07 period. The estimation results show that processing...

Publication

Jan 1, 2011
Andreas Stamm, Christian von Drachenfels

Value Chain Development: Approaches and activities by seven UN agencies and opportunities for interagency cooperation

Promoting value chain development is increasingly being recognized as a promising approach to address not only economic development, job creation and inclusive growth, but a wider range of social and environmental development issues. The paper outlines the different approaches and perspectives that ...

Publication

Jan 1, 2008
Andreas Stamm

Agribusiness and poverty reduction: what can be learned from the value chain approach?

The Millennium Development Goals (MDGs), adopted by the Millennium Summit of 2000 commit the international community to a strategy of accelerated poverty reduction. The proportion of people living under conditions of extreme poverty should be reduced by half by the year 2015 (MDG 1). The MDGs are to...

Publication

Jan 16, 2006
Andrea Stamm, Christoph Jost, Constanze Kreiss, Katharina Meier, Mike Pfister, Philipp Schukat, Henning A. Speck

Strengthening value chains in Sri Lanka’s agribusiness: a way to reconcile competitiveness with socially inclusive growth?

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